outsourcing issue #15

8/8/2019 Outsourcing Issue #15

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RM12, S$8, US$8KDN NO: PP14967/02/2009 (021381) MICA (P) 140/07/2009

PREMIER MAGAZINE ON BUSINESS AND TECHNOLOGY SERVICES INDUSTRY

I S S N 1 9 8 5 - 1 0 0 6

www.the-outsourcing.com

ISSUE #15, 2009

Is CloudSourcinga Fair DayEvent?

Is CloudSourcinga Fair DayEvent?

CloudComputing 101

Why externalproviders areoften better

Achievingbusiness successthrough process

excellenceHow tomanageoffshorerelationships

CloudComputing 101

Why externalproviders areoften better

Achievingbusiness successthrough process

excellenceHow tomanageoffshorerelationships


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CONTENTS

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Cloud Computing yes, yet another catchphrase inTechy language. The mushrooming o countless providerss causing companies to contemplate how and when to do

Cloud Computing.For some, things are a little cloudy when it comes to

this new IT phenomenon. With all the hype, its easy to losetrack o the real innovation thats taking place every day

sing this technology.For me, Cloud is, in essence, computing power served up

s a utility. Perhaps you could imagine o how electricityr cable TV usage and billing works. You can simply payee and use the computing power oered by the utilityroviders.

It seems it has massive potential or the business world.sers are attracted to its solutions primarily or strategic

easons such as fexibility and responsiveness, in additionto potential cost savings.

ow Cloud is giving birth to a new kind o outsourcing Cloud Sourcing.

In ourCver Sry columnist Jerry Durant tracks thishenomenon. He argues that while it is highly possible

that Cloud Sourcing has the potential to become a sourcingpproach, it is unlikely that it will have immediatecceptance.

urant says, This is largely due to relationship maturityssues, fexible scalability, and the need to conduct advancedapacity planning.

gree or disagree, why not write to us on your opinions in

this matter? Selected letters will be published in the comingssue o this magazine and its online site.In the Cversa segment, we have eatured Gopi

Ganesalingam, the Head o Lava Protocols Malaysia. Hisompany is the go-to-market partners or Salesorce.comnd Astadia Inc. in Malaysia.

ere, he gives us a brie introduction to prevalentCloud solutions such as Inrastructure-as-a-Service (IaaS),Platorm-as-a-Service (PaaS) and Sotware-as-a-Service(SaaS).

lso, please be sure to check out our eature titledOshoring Relationship Management, where Danny Ertel

nd Joseph Bubman o Vantage Partners study the impact culture in cross-border strategic tie-ups.

Managing Editor/Publisher:Sritharan Vellasamy

Consultant:Sundra Surian

editorial [email protected]

Sub Editor:Simon VellaArt Director:Steven ChooGraphic artist:Shafe OsmanContributors:Tamyne Menon,Dorothy Llew, Mohd ArshadCoordinator:James Wee

sales [email protected]

Vikraman Visno

Resh Nathen

contact [email protected]

WORDlabs MEDIA (001645509-W)

27-1, Metro Centre, Jalan 3/146,Bandar Tasik Selatan,7000 Kuala Lumpur;

Phone: +603 90564770, 90580971;Fax: +603 90564771, 90580972

Editorsnote

the eam

[email protected]

RM12,S$8,

US$8

KDNNO:PP

14967/02/20

09(021381)

MICA(P)140

/07/2009

PREMIERMAGAZ

INEONBUS

INESSAND

TECHNOLOG

YSERVICESI

NDUSTRY

ISSN 1

985- 100

6

www.the-out

sourcing.com

ISSUE#15,20

09

IsCloud

Sourcing

aFairDay

Event?

IsCloud

Sourcing

aFairDay

Event?

CloudComput

ing101

Whyexternal

providersare

oftenbetter

Achieving

businesssuccess

throughprocess

excellence

Howtomanage

offshore

relationships

CloudComput

ing101

Whyexternal

providersare

oftenbetter

Achieving

businesssuccess

throughprocess

excellence

Howtomanage

offshore

relationships


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fdur ladra orga a o

6| Outsourcing | November-December 2009

Outsourcing | news bits

PIKOM, The National ICT Association oMalaysia, honoed oganisations and ICTleades at the PIKOM ICT Leadeships Awads(PILA) 2009.

MOL Access Potal Pesident and CEOGanesh Kma Bangah and Sime DabyGop CIO Tan Kah Chai wee awaded withthe Technopene and CIO Ecellence awadespectively.

ewlett-Packad (M) and MOL Access Potalwee both annonced as joint-ecipients o thePIKOM Membe Ecellence Awad.

Lembaga Hasil Dalam Negei (LHDN)Malaysia eceived the PIKOM ICT OganisationEcellence Awad while Yasmin Mahmood,Managing Diecto o Micosot Malaysia Sdn

Bhd eceived the PIKOM ICT Pesonality o the

Yea Awad.The awads wee pesented by the Ministe oScience, Technology and Innovation (MOSTI),YB. Datk Sei D Maims Johnity Ongkili

nd Depty Ministe, YB. Tan Haji Fadhillaht the PIKOM Annal Dinne 2009 in Petaling

Jaya on Oct 30.PIKOM ICT Leadeship Awads event

honos and gives de ecognition to ot-standing leades in the ICT indsty andse commnity. Intodced in 2008, the

wads ae pesented to individals andms that demonstate ICT best pactices in

thei indsty, commending the commitmentnd innovative bsiness stategies eqied

to advance in the local and global maket-

place.

CISCO AND MuLTIMEDIA Development Copoation (MDeC),the Malaysian govenmentsagency tasked with developingthe Mltimedia Spe Coido(MSC) in Malaysia, annonceda collaboation to establishMalaysia as a egional hb otaining, cetication and thedevelopment o netwokingtechnology opeation skills.

This initiative is in line withthe Malaysian govenmentsagenda to povide a stongplatom to ceate and bild a

highly skilled knowledge-basedwokoce, thogh which Malaysia can enhance its positionas a global inomation andcommnication technology(ICT) and mltime-dia hb.

The netwok hasbecome the platomo ICT sevices incollaboation andvitalisation. How-eve thee is a global shotageo poessionals with knowledgeo designing and opeating this

Intenet Potocol (IP) basedPlatom. Cisco is committed toiving innovation and bilding

talent in the aea o IP-basednetwoking and technologies,

ceating a sstainable,highly-skilled and in-demand wokoce todive gowth.

O collaboation with MDeC will

povide taining andevelopment skills that willontibte to the local knowldge inastctes citical o

acceleating and sstainingeconomic gowth in Malaysia,said Samee Padhye, senio vicepesident, Woldwide SevicePovide Line o Bsiness, CiscoSevices.

Integal to this collaboation,Cisco will povide taining anddevelopment o local patnecompanies to enable them tooe potentially the completeange o Cisco taining po-gammes and cetiicationsto stdents thoghot theegion.

Kiwi iT company Datacomha ofcially launched itecond Malayian ofceevicing the local contactente maket.

New Zealand PimeMinite John Key wa onhand fo the opening of

the new facility in BandaUtama, Kuala Lumpu.

Ou gowth in Malayiai fuelled by the condenceu client have in u to

deploy quality olution,nabled by talented peopleco the egion that ae

paionate about innovationnd ceating value, aid

Kity Hunte, managingdiecto fo Datacom

onnect, pecialit inontact cente eviceco Aia Pacic.

Datacom wa foundedin Chitchuch in the mid1960 and now panlocation in Autalia, NewZealand, Malayia and thePhilippine. Ou ecentowth, inceaingly fuelled

by an expanion into theMalayia dometic ICTmaket, ha lead to theinvetment in ou newfacility. Thi invetmentpeak to ou condence

in Malayia a Datacomoe egional hub location,aid Datacom CEO Michael

Bowne.

T r E NEW locations in the

Klang Valley will be developedinto MSC Malaysia cybecen-tes to povide moe accessibil-ity to tech companies wantingto be pat o the MSC Malaysiainitiative.

The thee new cybecentesae the Pesot Towe in Petal-ing Jaya, GTowe and BangsaSoth City in Kala Lmp.

Thee ae o cybecentes

n the Klang Valley cently,which ae Kala Lmp CityCente, Cybejaya, KL Sental

nd Mid Valley City. Theee si cybecities in the states Kedah, Penang, Malacca,

Peak, Joho and Pahang.atk Badlisham Ghazali,

hie eective oce o theMltimedia Development Co

Daacomop codMala ao ce

Cco collaora h MDC

thr mor locao dvlopo M

sC Malaya cyrc

poation (MDeC), annoncedthis at the 21st MSC MalaysiaImplementation ConcilMeeting (ICM) on Nov 9.


9/48November-December 2009 | Outsourcing | 7


SINGAPOrE EMPLOYEES ae moe likely to opt towok o a company that is ethical and takes socialand envionmental esponsibilities seiosly than aival that ignoes them, accoding to a new stdy.

Nine ot o 10 (91%) wokes said they woldthink abot a companys eptation on ethical andgeen isse when consideing a job oe, with twoot o thee wokes (66%) saying this was veyimpotant.

Eight ot o 10 (80%) said they wold only woko companies that pheld thei envionmentalobligations.

In deciding whee to wok, 39% said policies to ad-dess global waming wee vey impotant moethan wokes in the uS o Eope.

The svey by a ecitment m Kelly Sevices

polled 3,125 employees acoss IT, gov-enment, manacting and etailsectos.

Moe than hal (53%) o Singapoe wok-es polled also said that they wold pee totake a pay ct o lesse ole in a company thathad a eptation o looking ate sta, theenvionment and geneal commnity.

Wokes asked the same qestion in otheconties etned simila eslts:

50% in Malaysia; 48% in Indonesia; 48% inHong Kong; and 44% in Thailand.

The indings ae pat o the Kelly GlobalWokoce Inde, which obtained the views oappoimately 100,000 people in 34 conties cov-eing Noth Ameica, Eope, and Asia Pacic.

TATA CONSuLTANCY Sevices (TCS) said ithas eceived a two-yea mlti-million dolladeal with Singapoes Peoples Association,a stattoy boad nde the Ministy oCommnity Development, Yoth and Spots,to povide annal Application ManagementSevices (AMS).

unde the ageement, TCS will developand maintain the associations bsiness andcitizen centic applications inclding missioncitical applications.

This involves consolidating its mltiplevendo envionments allowing edced main-

tenance costs and simplied system admin-

istation. This is epected to enable highepocess eciency and sta podctivity acossthe oganisation.

Giija Pande, EVP and head o TCS AsiaPacic, said: O epetise in AMS, com-bined with o ability to delive cetainty oeslts will povide sstained vale to PeoplesAssociation.

We have instilled stict qality contolpocedes and contine to dive moe valeo o Singapoean clients thogh inceasedsevice qality povided by o team o highlyqaliied people with local knowledge o

clte and pocesses.

MAHINDrA SATYAM, ealieknown as Satyam CompteSevices Ltd., ecently said it isplanning to tie p with Saab,a militay deence and civilsecity soltions povide, todevelop its India opeations.Saabs otsocing contactto Satyam is estimated to bebetween uS$300-$400 mil-lion and is one o the lagestcstome wins in the ecentpast, Indias Epess Bzzepoted.

This collaboation is a

stategic step towads syn-egising Satyams niqestengths in mission citicalsystems, ErP, engineeing se-vices, avionics and intega-tion and Mahindas Systechsmanacting capabilitiesand engineeing ecellence,said Anand Mahinda, ViceCMD, Mahinda Gop.

The contact wold alsocove aeas sch as home-land secity whee ocsis planned o end-to-endsecity soltions. We view

this elationship with Mahi-nda Satyam as a stategicmeeting o two highly skilledteams believing in techincaland engineeing ecellence,said Ake Svensson, Pesident& CEO, Saab.

Accoding to the initia-tive, Satyam and Saab willjointly addess the Battle-ield Management System(BMS) which is eld povenand deployed acoss manyconties o the IndianAmy.

workr ak

Gr urouly

tCs ag dal h sgapor

Popl AocaoGLOBAL OUTsOUrCErConvegy ha ofcially openedit bigget contact cente a afuthe ign of it condence inthe Philippine a an outoucingdetination.

The new Manila cente, whichwill houe 3,500 agent at fullcapacity, i the company 12thcontact cente in the county.Convegy county manage

Maife Zamoa aid 2009 wa abanne yea fo Convegy. sheaid the company hied cloe to4,000 employee in 2009 andthe new Manila facility i it fouthite opened thi yea. Zamoaaid the company would launchanothe ite oon.

Us Ambaado to thePhilippine Kitie Kenney aidat the launch that the PhilippineBPO induty i expanding,including in the povince, ahown in he viit to a BPOcompany in Leyte ecently.

Kenney aid Convegynewet facility i a ign ofcondence to the high-qualityFilipino wokfoce and thegovenment ability to uppotthe buine.

Covrgy

op largcoac cr Mala

sayam, saa Us$300m ouourcg corac


10/488| Outsourcing | November-December 2009


SIx INDIAN CITIES ae among the eighttop global destinations o otsocingaccoding to a new svey.

The ndings eleased by CybeMe-dias Global Sevices and advisoy m,Tholons, placed Indias IT-BPO epot

sevices evene at uS$40 billion in2008, and evealed the si Indian citiesas Bangaloe, Delhi NCr, Mmbai,Chennai, Hydeabad and Pne. Theothe two cities ae the Philippines Ma-

nila NCr and Ielands Dblin City.In the list o top otsocing na-

tions, India came ot tops, ollowedby the Philippines, Ieland, China andBazil.

Fo CIOs today, nding a cente o

ecellence is moe than jst lowe cost. Itmst conside location, isk mitigationo bsiness, cltal anity and scal-ability o the skilled wokoce, AvinashVashistha, CEO o Tholons says.

INDIAS THIrD-LArGEST IT sevices com-pany Wipo Technologies is eyeing acqisi-tions in the BPO space as it epects the sectoto dive the gowth o the IT indsty, saysSesh Vaswani, joint chie eective o thecompanys IT bsiness.

Acqisitions ae pat o o stategy. Wekeep looking at it. The BPO space is likelyto be the net engine o gowth o the ITindsty. Also, the economy has impovedand the IT demand sitation is impoving.The deal pipeline is good and the demandenvionment is bilding p, Sesh said onthe sidelines o Indian Economic Smmit2009.

Talking abot gowth otlook he said,Indian economy has stated looking pand demand o otsoced IT sevices hascetainly impoved. He said that sectossch as banking, inancial sevices andinsance ae once again seeing gowth.

WOrLDWIDE sOFTWArE a a evice(saas) evenue i foecat to each Us$7.5billion in 2009, a 17.7% inceae fom2008 evenue of Us$6.4 billion, accodingto Gatne, a eeach m. The maketwill how conitent gowth though 2013when woldwide saas evenue will total oveUs$14 billion fo the entepie applicationmaket.

The adoption of saas continue to gowand evolve within the entepie applicationmaket, ay shaon Metz, reeachDiecto at Gatne. The compoition ofthe woldwide saas landcape i evolvinga vendo continue to extend egionally,inceae penetation within exiting account

and geeneld oppotunitie, and offemoe-vetical-pecic olution a pat ofthei evice potfolio o though patne.

Adoption of the on-demand deploymentmodel ha continued to gow a on-demandvendo have extended thei evicethough alliance, patne offeing, andmoe ecently, by offeing and pomotingue application development thoughplatfom a a evice (Paas) capabilitie,Metz ay. Although uage and adoption itill evolving, deployment of saas till vaiebetween the entepie application maketand within pecic maket egmentbecaue of buye demand and applicability

of the olution.The content, communication andcollaboation (CCC) maket and thecutome elationhip management (CrM)maket continue to have the laget amountof saas evenue aco maket egment,with the CCC maket geneating Us$2.6billion in 2009, up fom Us$2.14 billion in2008 and the CrM egment geneatingUs$2.3 billion in 2009, up fom Us$1.9billion in 2008.

DuBAI OuTSOurCE ZONE (DOZ), a membe o Tecom Investments,is epeiencing ovewhelminggowth in the otsocing inds-ty.

The gowth took s by spise,Esmail Al Naqi, eective diectoo Dbai Otsoce Zone, told uAE

newspape Gl News.This yea, the zone saw a

23% incease in the nmbe ocompanies and is epecting manymoe by the end o the yea. Thetotal nmbe is p to 105 compa-nies. Today, we ae nning at 100%occpancy within the zone and weae epecting new bildings to bedeliveed within a month.

We have a solid pipeline othese bildings. Oveall, it hasbeen a vey positive yea andthis is whee the ole o the ot-

worldd saasrvu o gro,ay Garr

wpro y bPO uy

ida c ll h hod

During theglobal downturn,companies

have beenmore inclinedto outsourcetheir peripheral

businessneeds.

bad m

a oofor DuaOuourc Zosocing phenomena comes om,he said.

Ding the global downtn, compa-nies have been moe inclined to otsocethei peipheal bsiness needs, with costctting and making eciencies the maindives.

Companies ind the best soltion

can be ond in DOZ, eithe thogheengineeing thei back oce opeationsand consolidating it back in DOZ ootsocing it to a thid paty, opeationalin the zone o elsewhee in the uAE, AlNaqi said.




THE INTErNATIONAL Association o Ot-socing Poessionals (IAOP) has indctedOlive T. Bssmann, CIO o SAP AG inGemany, and Michael S. Mensik, a patnein the Chicago, Illinois law oce Bake &McKenzie Intenational, into its Otsoc-ing Hall o Fame.

Bssmann and Mensik wee honoedat a gala dinne attended by otsoc-ing poessionals om aond the woldecently at the associations 2009 EopeanOtsocing Smmit at the CopenhagenBsiness School.

Ove the past two decades, Bssmannhas ecelled at diving and managingtansomational change initiatives acoss

comple mltinational entepises. Inleadeship oles with IBM, Detsche Bank,and Allianz (Insance and Asset Man-agement bsinesses), he has deliveedmillions o dollas in cost savings thoghleading-edge inomation stategies incld-ing otsocing, shaed sevices and sevicecentalisation.

Bssmann was appointed CIO o SAP AGin Septembe 2009. Based at the companysheadqates in Walldo, Gemany, he isesponsible o SAPs coss-nctional ITdepatment and sppots the companysstategic diection. until ecently, Bssmannwas an invited membe o the BITS AdvisoyConcil, a CEO-diven nancial sevices

indsty consotim that compises thelagest nancial instittions in the uS.

IAOP Chaiman Michael Cobett said,These individals epesent the highestqality o poessionals in the otsocingindsty globally. Not only ae they leadesin bsiness, they ae also leades in society.These Hall o Fame indctees ae at theoeont o advancing pactices that ae amodel o all companies.

recent indctees honoed at the 2009Asia-Pacic Otsocing Smmit wee: TanSi Amisham A Aziz, ome pesident andCEO o Maybank and peviosly a MalaysiaMiniste; and D. Li Jien, chaiman andCEO, Nesot Copoation.

CHINA IS WOOING the best o

Indian IT companies to ente theChinese maket whilst leaningom Bangaloes eample as theSilicon Valley o India.

A high level team om ChinasChengd city is in Bangaloe seek-ing Indian IT companies to investin the citys 60 million sqae meteHitech Indstial DevelopmentZones Tian Sotwae Pak epotsThe Deccan Heald. Anothe teamom Knming city in China is alsoin Bangaloe to maket the city toIndian IT playes and lean omBangaloes sccessl eample.

The IT otsocing maket is

one o the most pomising inds-ties in China; oecast to gowto uS$29.43 billion by the end othis yea. The team om Chengdwill meet with moe than 80 ITms in Bangaloe. They will alsopaticipate in the Nasscom PodctConclave to visit top Indian ITcompanies.

Chengd is one o the topotsocing destinations in thewold along with the Chinesecities Shanghai, Beijing, Shen-zhen, Dalian, Gangzho andTianjin becase o its r&D centes,stong govenment sppot andinvestment incentives o IT ms.Chengd is seeking to boost its ITotsocing indsty to uS$100-uS$200 million annally by2010.

xErOx rEVEALED that it will by bsinesspocess otsocing soltion povide Ali-ated Compte Sevices to ceate a uS$22billion global entepise o docmentt e c h n o l o g yand bsiness

pocess man-agement. Thedeal is initiallyvale at uS$6.4billion, and itis the lagestacqisition xeo has eve made.

In a Webcast, xeo CEO usla Bnsstessed the synegies between xeo andACS, calling the soltion povide a leadein the docment management space. In

oming the uS$22 billion potential pow-ehose, uS$17 billion will be in ecingevene o sevices, a signicant boost too potable annity steam, she said.

The evene xeogeneates om

sevices will tipleom uS$3.5 bil-lion in 2008 to anestimated uS$10billion in 2010.

ACS will ope-ate as an independent oganisation andinitially will be banded ACS, a xeoCompany. Lynn Blodgett, cent pesidentand CEO o ACS, will head the oganisation;he will epot to usla Bns.

SWISS FINANCIAL sevicesgiant uBS has ageed to sellits Indian bsiness pocessotsocing (BPO) nit tootsoce Cognizant in adeal that incldes a mlti-yea sevices contact.

Accoding to epots,the sale o Hydeabad-based uBS India SeviceCente, which employs2,000 employees, is pato a new otsocingstategy o bying athethan bilding.

The deal will also see Cognizant povid-ing IT, BPO, knowledge pocess otsocingand emote inastcte management

sevices to uBS woldwide.Cognizants boad bank-

ing and nancial sevices e-petise as well as its cltalit with uBS complementthe competencies povidedby the India Sevice Centetoday, while povidingtechnology capabilities thatepand the sevices we canby om India to sppoto cost savings, eciencyand f eibility objectives,said uBS gop chie opeat-

ing oce ulich Kone.The sale is epected to complete by

yea-end, sbject to eglatoy cleaance.Financial details wee not disclosed.

iAOPduco ladr

o Hall of Fam

Chgdular frombagalor

Xrox o ap up ACs

Ubs ll ida bPO arm o Cogza



Outsourcing | InsIghts

AcieviBuieExcellecerouProceExcellece

Produc adservices oeredby a buieare liked oe criicalparameer ofvalue o ecuomer.



InsIghts | Outsourcing

By Adiya Balla & sadeepBaerjee

Process imProvement a b d-d h x h bu. thjuy P exll (payu ahg p hughpu) Bu exll (pay u xl-lg bu uh a pfably)wll qu appg h lu ag

h bu h apppa pp agy.

ntxt f bun gwthPdu ad d by a bua lkd h al paa alu h u. cal paa alu a h paa haa- a pdu whh hu wllg pay. th paa

ha a wd a al by h ukp hagg a h ak gaauy.

G h dya p adh lu h d h u,gaa a uuly adapgh al p (refer image above).

o h kll ha aagu u h ably udadh u ag h lu h

At the Onset of the ProcessImprovement Imperative

During the Implementation of theProcess Improvement Imperative

At the end of Process ImprovementImperative

a) Perform Gap Analysis Baseitonaprocessimprovement

frameworktobenchmarkcompanyperformancewithindustrypractices

Decidewhatcanbeimplementedwithintheyear

b) Dene strategy and milestones Assessbusinesscontextandcritical

parameterstoachieve Performriskassessment Estimateeffortbasedonstated

assumptions Derivetheschedulebasedonavailability

ofresources,calculatethecost,compareagainstbudget,resolveconictsifany

Denemeasurablemilestones.Example:Processpilot,processdenitionetc.

c) Provide Resources AssignaProjectManager,site

coordinatorsandresourcesforimplementationofeachfocusarea/processarea

ObtaincommitmentsonInfrastructure,andacquireotherhardware/softwaretoolsasneeded

CreateaResponsibilityandauthoritymatrixlinkedtodeliverables

Obtainsignofffrominternalandexternalstakeholders

d) Project Management Ofce FormaProjectManagementOfceto

reviewimplementation

a) Regular reviews Regularlymonitorimplementationof

processesandotherprocessassets EscalateissuesasperEscalationMatrix.

Maintainanissueregisterandanactionregister

Keeprelevantstakeholdersinvolvedtoidentifyopportunitiesforoptimising,removeredundancies

b) Capture lessons learnt Analyseauditresultsandlookforpractices

thatarenotimplemented. Identifyinefcienciesindeployment Identifynewrisksdiscovered

c) IFDL: Implement-First- Dene-Later (Trythe bottom-up approach it works !)

Prepareadraftprocess Doprocesspilotsandevaluateresults.Fine

tunedenitionsbasedonpilotresults Roll-outfullscaleacrosstheorganisation Reviewprocessimplementation Getintoformaldenitionofprocessesd) Be open to change, its a learning process Aprocessdenednowmaychangelater

basedonseveralfactorssuchasbusinessconditions,servicelevelagreements,customersatisfactionparameterset

e) Training and mentoring Planandtracktrainingactivitiesandthe

impactondevelopingskills/competencies

Createmechanismsformentoringlinkedtostaffcompetencydevelopment

f) Re-prioritise focus areas Re-prioritisefocusareasasappropriate

basedonperiodicreviews.

a) Perform After Action Review (AAR) Checkagainstthesetbenchmark Identifyareasofstrengthand

weaknesses Identifynextsetofprocessareas

thatcanfurtherhelptheorganisationcapitaliseonthegains

b) Reward and Recognition Appreciatecontributionofall

stakeholdersc) Next Steps Createtheplanforthenextyears

processimprovementimperative.




d haa. t ga wlld pdu ad h bu.

P i p a b dd bu. A hw fgu ab, a h h py h bu a wk whh ap pp dg a. P pp a h bu a gag auu h wad fy ga ad

juny f p mpmntPg h p p aalag a p p pa

h ya ly pa h y.th t bl (on the previous page) hw a appah p p u bj h bu a .

may gaa d lk aa sagy o pha ad ipF-Df-La (iFDL) ipla(hghlghd d lu abl).

nlunF ad uaabl bu p pa ha adap ag lu d pa h-z-f-all appah p pub-pal ul.

Aditya Bhalla is Practice Manager with QAI Innovation product and process design. Sandeep Banerjee is Sand Human Capital Management Practice consultiof best practices based on CMMi, and PCMM frameat [email protected] and sandeepcrpark@h

Find out One ofthe core skills that

management must

focus on is the ability tounderstand the stages ofbusiness evolution. Theinvestigation will yielddifferent answers for

different products andservices.

improvement imperative for theyear is only part of the story.


15/48

Regional

Operationsand DevelopmentGroup

10th10th10th8-9 February 2010

SMX Convention Center, Pasay City,

Metro Manila, Philippines

Exhibit Hours: 9:00 AM 6:30 PM

For more information, contact:

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Outsourcing | cover story

B J e. Duan

What is cloud computing? Theconcept originated rom the cloudmetaphor as used to describe theinternet. Rather than driven by arigid design, the navigation anddeployment o need is satised bya community o service resources.In this context it was conceivedthat the same could hold true oroutsourcing.

Up to this point buying compa-nies have bought xed commoditieswhether it be a number o seats ina call centre or a xed price or thedelivery o an application system.Unortunately business condi-tions oten demanded changeand these arrangementsrequired augmentationin order to deliver asuitable outcome.

On the otherhand, presenteconomic con-ditions havep l a c e da d d e dstresso n

buyers to lower costs urther. Theirsights are clearly set on lexibleresourcing whereby they only payor what they use and not whatthey dont as oten set by contracts.Thus the concept o cloud sourcingwas born.

pBuyers want to pay as little as possi-ble or the services that they receive.Even though there are other actorsthat infuence a sourcing decision,such as increasing bandwidth andservice delivery, cost remains as oneo the leading actors. Thereorehaving lexible resourcing canmake cloud sourcing a desirable

approach.However there are

several sig-nicant

buying risks to be considered. Theseinclude: Adaptive Abilities Quality Consistency Scalability and Availability

Unlike the internet whereresources and routes are drivenrom the interest o the user, in anoutsource arrangement the deploy-ment or redeployment o resourcesis driven rom within the sourcingcommunity. This means that bondedrelationships must exist in order tooer cohesive adaptability.

One cannot simply connect a new

resource, especially rom outsideo that organisation, and expectthe service delivery to be fuid innature. Oten that presents dierentattitudes about quality in termso the measure and the means odelivery. There are limitations thatthe cloud can be expanded by.

Scalability is much like a powerstrip, there may be no physical limitson the number o plugs that youcan attach but there are limits interms o its eectiveness to deliverpower. It would be hard to imaginethat a group o providers, say 25,could deliver the services without asignicant amount o coordinationrisk being introduced.

In a similar sense a reductionin service has a proound eect oncost of service. A provider who offers

Iclud suinga fai da n?

Plug and

play Ii highlpibl halud uing hah pnial bma uing appah.

salabili i muhlik a pw ip,h ma b nphial limi nh numb fplug ha u anaah bu ha limi in m

of its eectiveness dli pw.



cover story | Outsourcing

service at a x rate is basing this ona given level of service. A reductionin the service needs increases thecosts because xed operating costsbecome disproportionate to theamount o resource being utilised.The cloud also assumes that targetresources are available. This is calledthe bench and many source provid-ers maintain a very limited resourcepool. There also comes into questionthe quality o the bench. I available,the question remains as to whethersucient core cloud investment hasbeen made to insure ease o transi-tion and that knowledge quality or

the resource pool.Although it might appear that

some sourcing disciplines may oerincreased opportunities or cloudsourcing (BPO, CCO etc) this oftenoverlooks the need or core skilltraining and synchronisation to putthe cloud resources into the servicedelivery mix.

d Oten companies echo theirfexible abilities throughinternal stang control.As we consider cloudsourcing as a solution,these same irms mustlook outside o their organi-sations. This requires purposeulconnection, trust and cooperation.

Unortunately the competitive

nature o the outsourcing disci-pline does not easily oster thiscollaborative orm o relationship.A lack of control phobia gives riseto concerns over contract/customerownership, distribution o revenues,and relationship management. Justlike the need or Vendor Relation-ship Management and CustomerRelationship Management (VRM-

CRM) in a sourcing engagement, aVRM-VRM relationship must alsobe orged.

Prior to Pre-economic down-town I strongly advocated or

a reduction in the numbero tier 3 players (capac-

ity exceeded demand)through mergersand consol ida-

tions. This resultsin the creationo additionaltier 2 players,which are inshort supply.

We havenot seen this

happening thismay be due in large part to thephobia of losing control. Companies

Pn nmi ndiin haplad addd n bu lw fuh. thi igh a lalset on exible resourcing wherebyh nl pa f wha h u.



Outsourcing | cover story

would much rather go out o businessthan to share control. For this reasonconcern is raised as to whether cloudsourcing can become a choice in thearsenal o source approaches.

The graphic box (on the previouspage) illustrates how cloud sourc-ing might occur should there be awillingness o the outsource service

providers to be cooperative andfearless. So what are some of theconsiderations that suppliers haveto take into account? First and ore-most is the relationship, the trustbond and the quality o the servicebeing provided collaboratively. Asthe lead supplier its your reputationthat is in the balance.

Excuses are no excuse in the eyeso the buyer. The measures o viabilityand capability as exercised over youby the buyer now become a duty thatyou must exercise over your cloudrelationship. O additional attentionin the VRMVRM cloud relationshipis the expand bench deployment.Benchwarmer organisations areapt to demand some compensationor the relationship. Preparatoryand training measures will prompt

the need or base compensation inorder to retain the bench rather thanoperate rom a position o possibleutilisation (as the cloud suggests interms of exible informal inclusion).Suppliers must also pay close atten-tion to resource reductions, whichmay also be reerred to as cloudthinning. The principal o the law

o diminishing returns exists.A service offered at a fixed

price is based on a certain levelo delivery. I reduced xed costsremain, despite urther a reductionin service, the result would refect tolowered prot margins.

While it is highly possible thatcloud sourcing has the potentialto become a sourcing approach,it is unlikely that we will see thisas having immediate plausibility.This is largely due to relationshipmaturity issues, fexible scalability,and the need to conduct advancedcapacity planning.

O particular concern is theability or the outsource serviceenvironment to be fexible and or

appropriate levels o consistent qual-ity management to be sustained.Equally the buyer community, whencontemplating cost savings andresource scalability, must recognisethe potential or reaction latencyand inconsistencies in delivery andquality. Furthermore both buyersand outsource suppliers need to be

prepared to critically evaluate thecloud in terms o secondary buyer vi-ability and delivery abilities. Globaloutsourcing oers many challengesand tradeos.

The question is not whether wecan but whether it makes practicalbusiness and cultural sense to do so.Every problem has solutions andthese might very well be problemsthat are worth taking the risk.

Jerry Durant serves as ChairmanEmeritus (founder) for The InternationalInstitute for Outsource Management,a trade organisation dedicated to theassessment, development, and guidanceof outsource service providers in theITO, BPO, Call Centre and KPO domainareas.

The good and thebad Haingexible resourcingan maklud uinga diablappah.Hw h aseveral signicant

buing ik bnidd.


19/48

OUTSOURCINGTHE Premier Magazine on Business and Technology Services Industry

PROVIDINGTHE RIGHT STAGE

FOR OUTSOURCINGSERVICES PROVIDERS

AND SEEKERS

A quality production of Word Labs Media

CONTACT US:

phone: +603-90564770; fax: +603-90564771;

e-mail: [email protected]; website: www.the-outsourcing.com


20/48

Outsourcing | Conversation

Q: What is Cloud Computing?A: Cloud computing is a generalterm for anything that involvesdelivering hosted services overthe Internet. These services are

Can you elaborate more on SaaS,

IaaS and PaaS?

One of the main advantages is thatcloud computing allows a user topay for only as much capacity as isneeded, and bring more online assoon as required paying for what

So what is the difference betweenCloud Computing and an ASPmodel?

Why is cloud computing gaining

market share? What ticks to be asuccessful Cloud player?In my opinion, enterprises are beingdrawn to cloud computing by reli-able and scalable IT infrastructure,

What the future holds?

Digging into the subject of Cloud Computing, Outsourcing Magazines SritharanVellasamy holds a conversation in Kuala Lumpur with Gopi Ganesalingam, theHead of Lava Protocols Malaysia. His company is the go-to-market partners forSalesforce.com and Astadia Inc in Malaysia.

CludCmpug 101


21/48

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By Reeika Joi

e-learning is a mt thth td xpot owth,d ov th y, op oucvouto cy mk mk.Th hv b my commutyot to b l M-mt sytm (lMs), th dutypvt tchooy, toth op ouc omt.

Wh Mood my b th motpopu o th ot, th vuch pojct wth uqu UsP,cud Ot, i, sk Pojct,Fot, Doko d Co. lMs th dvopd -hou bybuy, o mo ot, cd om- comp.

Commc otw ow p-my dtbutd poduct omby mot povd, budd wthmpmtto d mtcvc. Op ouc ppctoo th oth hd, b o-tctv, c b cutomd ocopot u, uvt, doth oto.

iig h gap piay

Comp copot -to th oo t ddvopmt ctvt, wh u-vt d choo o -oppotut to th u tm ddtc tudt. Ovth t 3-4 y, th h b tdy th umb o uwho hv body xpmtdwth op ouc tchoo tod th ucto, om copot hou to ivy luuvt.

Th cdmc fd h uv-t uch th Oxod ittut o

Strengths Costsavingscustomisede-learningsolutionsareexpensive.Themarketcomprisingsmallorganisationsorstart-ups(corporate/academic),inallgeographies,withlow(tonil!)purchasingpower,butstrongneed.

CrowdwisdomCollaborativecodingandre-codingallowscountlessimprovementstobemadebytheworld-poolofprogrammers.Also,technicalissuesareresolvablebyconsultingthecollectivelearningexperienceofthecommunity.

customisationBeingopensource,usersareabletoincludemodicationsandcustomfeaturesavailable/capableofbeingdeveloped,specictotheirneeds.

ControlUsersareincontroloftheiropensourceprojectsduringdevelopmentandimplementation,asopposedtoexternalproviders,whomayonlyoffersomelevelofcontrolduringimplementation.

ProtectionSinglevendorlock-insareavoided.

Weaknesses UserdependantimplementationUniversitiesandcorporatetrainingdivisionsmaylacktheknowledge,resourcesorinfrastructuretolaunchopensourceenablede-learningprogramsstraightoutofthebox.

LongtermmaintenanceOvertime,usershavetomaintainin-houseresourcesformaintenanceandupgrades,asopposedtocommercialarrangement.

OpportunitiesIntegrationTheseapplicationscanbeintegratedwithotheropensourcebasedsoftware,orcustomapplications.Thiswillallowthetechnologytobekeptuptodatewithmarkettrends.

CommercialfriendlinessThetechnologycanbeendorsedbye-learningserviceproviders,enablingbuyerstoaccessexternalexpertise,whilestillsavingcosts.SpecializationAsneweropensourceapplicationscomeintothemarket,thereisawidescopeforspecializationindifferentproducts(courseauthoringtools,LMS/LCMS,platformsandbrowsers,mediacreationtools)aswellasusersegments(IT,HealthcareLMSwithincorporatesegment?).

Threats AggressivecommercialmarketTheglobale-learningoutsourcingindustryisercelycompetitive,withseveraltypesofplayersfromtheITeld,HRoutsourcing,BPOs,etc.Whiletheindustryhasntpositionedopensourcesoftwareas

competition,traditionalLMSsareultimatelyanalternativeforopensourceenvirons.CommunitydependantmodelThecoreprincipleofopensourceissocialconstructivism,whichwilllimititsgrowthanddevelopment(featureavailability,interoperability,etc.).Userqueries/requirementsmaybeleftunanswered,dependingoncommunitycontributions.

OpesourceCompetitionforcommerciale-learningcompanies

What is open source?Open source software sourcecode and other rights (usuallybestowed on copyright holders)are handed out under a softwarelicence in the public domain.Individual users can then modifyand redistribute the software,enabling application co-creation.

l Pctc, whch h b uMood to toduc o - mt uch wbct,podct, chtt, MCQ, tc-tv mt, d potoo to ttudt. ao, wth th copotmt, pubh compuch CneT hv ud Mood todv - cott o.

Wh th ot ty ddtm om th tvy mtu

Open source e-learningapplications surelyprovide massive costsavings as customisede-learning solutions tendto be very expensive.



InsIghts | Outsourcing

- mkt (th Us dUK), wod h dty pdthouh o commut. U dvop cout owfd op ouc ppcto vb outo to th my ch.

Th ct coomc tumomd op ouc mpott dvb opto o my, budt w mo th ft to bhd. a xmp, th Moodwbt how cd ctvty 2009 mot u cout

uch Bz, Mxco d Potu.Th o bhd th cb btt udtood thouh sWOT mt o op ouc- ppcto.

ipiai -aig uuigpaiOp ouc - h cvd ch o t wth th -outouc duty. svc po-vd hv vd vw bout tmpcto o th bu.Th omwht dpdt oth poto o th compy thduty vu ch:

Large international players aregenerally supportive of open sourcetechnologies. For example, Blackboard

in 2007, declared that it will not pursuepatent infringement cases againstopen source projects and schools. As acomplementary strategy, for targetingthe Small and Medium Enterprisessegment (which forms a signicantpart of the open source community),large e-learning providers are turningto hosted LMS solutions, which aremore cost effective and competitive.

Medium and small internationalplayers (and even some large com-panies) are in fact expanding their

services portfolios to include opensource related services. These includecompanies like Kineo, Innity LearningSolutions, Activica and many others.Services include integrating features foropen source learning platforms, coursecontent, consulting, implementationand ongoing maintenance for thetechnology.

e-learning outsourcing companiesin popular offshoring destinations,however, have a different take on opensource. It imposes a potential challengeto their value proposition againstonshore companies cost savings.Players in offshore locations are ableto offer solutions at competitive pricesfor international buyer communities.But with open source applicationsavailable for free, the long term may

see this niche segment as a strongcompetitor for offshore providers. Themajority of such companies ValueNotesinterviewed remained hopeful, andmentioned that the open source sec-tor may result in further business forthem after all. Corporates/universi-ties looking at cost-effective learningsolutions may turn to outsourcing theimplementation/feature development/maintenance for their open sourcesystems to offshore providers.

Th utu ook bht o op

ouc otw th -dom, wth vt-k up-pot, both mo th vcpovd d buy commut.Wth th o tchoo tht cuty b mpoyd, th o o ptcu mthod thtw dd duty ch.

Th tto d cobo-tv mwok whch cutyvov mo povd, ud utmty, tchoo u-t tht t w wy b hot oouto tht ch uqu u wb b to choo om to dd h- d.

Reetika Joshi, analyst, ValueNotes, aleading research provider focused onthe outsourcing industry.

Uer are i corol ofeir ope ource projecduri developmead implemeaio,

a oppoed o exeralprovider, wo may olyoer some level of control

duri implemeaio.

Users indevelopingcountries

are nowfndingopen

sourceapplicationsa viable

solution totheir manylearningchallenges.



Outsourcing | basics

by Dr Wendell O. Jone

CritiCs o uucng uually ehe agumen n he aumpnha nenal un huld be able pem a well a he uucngevce pvde, nly he nenalun appled gd managemenpacce and wked mae.smeme h may be ue, bu nm nance n.ouucng pvde uuallyhld an advanage n a numbe way.

gMulple clen allw an u-ucng pvde peae a acale unaanable by any ngle

Whyexternl provderre often etter

Best in class beue of thevrety of lentnd rumtneoutourngprovderenounter, erveprovder hve depth nd rngeof experene thtndvdul lentnt mth.

ganan. A lage uucngpvde can buy and ully ulelage, pweul, and me ecenequpmen han clen wh peaea malle cale. A lage-cale u-ucng pvde ha cndeableadvanage n negang pce andevce wh pvde equpmenand wae.

Lage-cale uucng p-vde can manan a bench echncal expe wh geae angeand deph han any he clenbecaue he uucng pvdecan ule he expee ecenlyand eecvely when pead vemulple clen n a lexble, aneeded ba.

Lage-cale uuce can

pecale, cu, and gan epeaedexpeence wh managemen ak ha may nly cme aundnce n he caee many manag-e n cume cmpane.

Cnequenly, uucng man-age n upple cmpane aeen me klled and have meunded expeence, whch lead he ecnd advanage.

pr gBecaue he vaey clen andccumance uucng pvdeencune, evce pvde havea deph and ange expeenceha ndvdual clen can mach.ouucng pvde can ghugh mulple eucung and



basics | Outsourcing

cnven ha culd nly happen

nce n he expeence n-huepennel.

Ju a he be ugen end be he wh d many pean he ame ype, day-n and day-u, uucng pvde wh dhe ame dcul ak epeaedlygan an advanage ve he whd hem nequenly nly nce.

p gthe ably pecale n kllal exend expeence whnew echnlge. inenal peplemay pacpae n a cnven a new peang yem a a-checue ccanally, bu hughengagemen wh mulple clen,uucng pvde pennel canhave h expeence numeume and gan a eal advanage nknwledge, peed, and ecency.

ppru frg prfA bg aacn hng andeanng he m alened peple uucng pvde can ene hee expeence n a mecnen ba a hancan he ypcal it depamen.

h ean, uucng pvdeen have vey gd peple whhe lae expeence, mehngdcul epduce n he -ganan.

r mgmrouucng pvde may alely n le cly empay labuwhen advanageu, lcae majacle n lwe wage aea hecuny he wld, mplemenugh andad n emplyee, ex-ece gh cnl ve nvene,ue leane managemen, and hule

me. thee acc ae avalable nenal ganan a well, buexpeenced uucng pvdeae nmally bee pned cay hem u.

rg fExpeenced evce pvde haveleaned hw bee deal whcnfc. Even he be bune ela-nhp aely g wad whudpue me knd. the becnfc elun mehd e hempance avdng emnand pung and geng dwn he eal ue, lkng wn-wnway elve deence, andung bjecve cea ha bhpae epec.

i mpan aemp elve dpue a he lwe level

and y avd dpue ecalanpcedue. i ma wach paen dpue elun veme and encuage he pveappache a pemanen way elve uue dpue, whleavdng he negave paen.

i al a gd nvemen an uucng manage mbh cmpane n dpue elu-n mehd. relanhp manag-e huld hnk wce abu unga pwe advanage ve he hepay elve dpue. Habualue pwe ede cpeanand evenually dey u nuucng elanhp.

i ma wach paen

dpue elun ve me andencuage he pve appachea pemanen way elve uuedpue, whle avdng he nega-ve paen.

Dr Wendell O. Jones is a Professorof Management and a former seniorexecutive at Compaq, NASDAQ, andMcDonnell Douglas. He is recognisedas a leading outsourcing practitioner,advisor and thought leader. He is theco-author of Outsourcing InformationTechnology Systems & Services rec-ognised as one of the best outsourcingreferences. The book was recentlyreleased in a Chinese edition.

Much needed

fexibility ... Lrge-le outourngprovder nmntn enhof tehnl expertwth greterrnge nd depth

thn ny of therlent euethe outourngprovder n utlethe experteeciently andeectively whenpred overmultple lenton a exible, asneeded .

Seamless It also a good

investment totrain outsourcing

managers fromboth companiesin disputeresolutionmethods.



Outsourcing | feature

One underlying act sccss- obass sta s thatsvcs obasato has com ao wa om osho otsoca cots to vov v a.As svcs obasato vovs,w oppotts as. Th at,as App Matas gVP a CiOro K ss t, s that a compaca mbac, va a b apat o that obasato o t ca

bcom ts vctm.its at mpotat thatoba oasatos stathat w mov to a obascoom a sta thatth hav to hav th xbtto b ab to o th wok whvth wok s mo cost-ctvo a whv th wok shh-toch to th cstom. Thatswh w psh obasatoas a k statc tatv ooasato bcas w wat to bo th a o that, Kxpas.

That cocpt o xbt o

b op to w oppotts as to th fst sct o sccss- obass: embac obasa-to. Sccss obass wcomsvcs obasato to thoasatos wth op ams; thaow thmsvs to b costata, costat op to thw oppotts a chas that th voto o svcsobasato psts. embacobasato mas ook at thb pct; cos v coo th wo as a potta socstato a thk abot thq avatas a oppot-ts that ach ocato os.

embac obasato s asoa mpotat stpp-sto th vopmt o a svcs o-basato stat. Whatv ma

Mandate the globalisation of pro-csss that ca b pom bttswh. Keep an eye on the future.

Wh th osho otsoct fst caht ho o uS bs-sss, most fms saw t as a oppo-tt to c costs thoh aboabta. Bt as th movmt hasvov as osho otsochas bcom svcs obasato compas hav ook past cost

embcingGloblisionThis is the rst in a series ofexcerpts from the newly publishedbook by regular columnist Atul

Vashistha, Globalisation Wisdom:The Seven Secrets of SuccessfulGlobalisers. Here he shareswith us his Secret #1: EmbraceGlobalisation

com, oasatos mst b awasm that th a mbacobasato o a that t mao.

model for embracing

globalisation

Th basc mo o mbac o-basato has o compots: Embrace globalisation across thebsss. Ask whether your processes shouldb pom btt swh.

Mandatingtheglobalisationof processesthat cannotbe doneelsewhere is

an importantpart ofstripping anorganisationbare.



feature | Outsourcing

ByalVshish

cosatos.i act, xbt s v mo

mpotat tha cost svcs o-basato. i cost was o pmacosato, i thk that oo to a shot o mt th a

objctvs, K sas.Th a objctv o a so

obasato stat s to hav axb wokoc a oba moa to as that th makts,cstoms a compttv vo-mt s o to cha, whch wq a compa to matacompttvss to b ab to o wok a t mo a tpac ov tm, h as. A thatswh sccss obass mbact acoss th bsss.

B gats, Co-Fo o Mco-sot, oc sa, i w a ot astcabot what w oo at, th ths a chac o o backwas thac o th comptto.

i ask wh ach pocss ca-ot b o swh, a oasa-to mst b astc abot whchpocsss a:a) co comptcsb) pom most ct -hos.

Ths o oom o osm thspocss: to svv, a bsss mstb w to stp ts ba, owto o thos pocsss that a tco comptcs. ev bsss

cto sho b o th tab oobasato t ts tak o, ao bcas t ca b pommost fct -hos omst-ca.

Maat th obasatoo pocsss that caot b oswh s a mpotat pat ostpp a oasato ba.Wth a compa, som popw sst obasato. Sccss- obass th back owom that sstac o toatt. ectv cha maamtthat scs top-v commtmta b- a asss pots

o sstac s a ctca pat o asccss obasato tatv.

Compas mst b costatvat a awas ppa to scapth o wa o o bsss to takavata o w oppotts. its to b that to a ths soto xbt ma compas a-s. Toa t s a bsss mpatv.As Thomas Fma wot ThWo s Fat, i o wat to owa osh a at wo, obtt a how to cha a aos wth t.

Compas that hav mbacobasato, c acompas sch as ge, Avva, Txasistmts, goo a Pocto &gamb, hav o a pooso poctv abo oshostatos. Bt th hav o

Gs I w no lisicbo wh w good ,hn h is chnc o goingbckwds in h c o hcompiion.

Companies mustbe constantly vigilantand always prepared toscrap the old way of doingbusiness to take advantageof new opportunities.



Outsourcing | feature

somth mo osho mpo-

s as w: top tat,attto to ta a qat,sophstcat m-v a so-v maamt, a v a vo ba tt a oat thatvas that o th omstc sta.

Th most sccss obassa compas who hav vsoaas at th hms. Stv Ba-owczak, om lovo CiO, sasthat t to scc obasa-to wthot vsoa as s kt to bak a cos cak wthsta ts. i ot ca howo mx t, h xpas, o o- to com ot wth a ba cak.

Vsoa as th os atth hm o obasato sc thb o obasato sawth b pct as t m: howth pa f xpa om th

uS a Wst eop to com-

pass ia, th Phpps, Cha,ia, Poa, Ch, Baz, rs-sa, Soth Aca, a mo. Thsvsoa as stoo, v th a as o obasato,that oba soc wo bcoma k compttv avata. Thsaw that oba soc co oto aow thm to c th costs,bt t co aso aow thm to owmo qck, to ct tm to makt,a v to mpov fcc aas qat vs.

embac obasato s thfst sct o sccss obassot bcas t s cssa th mostmpotat, bt bcas t as thoato o th sx scts that o-ow. i, w s th pcpsthat ths fst sct pop pthohot th xt chapts.

embac obasato s abot

s th b pct. its abotook bo a s statoo a patca st o pocsss. itsabot a attt cha; abotb th pcps o svcsobasato to th bsss ambac thm v csothats ma.

Atul Vashistha is Chairman of NeoAdvisory (formerly neoIT), a leadingmanagement consultancy since 1999,focused on independent, objective andactionable advice to enterprises thatseek to transform their organisationsby capitalising on services globalisation.His latest venture is BestOutsourcing-Jobs.com, an online job portal focusedon outsourcing careers. He can bereached at [email protected].

Think about it

embcinggloblision isbo sing hbig pic. Isbo lookingbyond singldsinion o picl s opocsss.


29/48

Otsourcing Malaysia (OM) is an initiativef the outsourcing industry and a chapterf PIKOM the National ICT Association.

The prime objective of this organisation is tonhance global visibility of Malaysian service

provider capabilities to the global buyers. OMfocuses on enabling both buyers and providers ofervices to work together on addressing service

eeds, within the aegis of global best-practicesnd competencies.Ofciated by the Prime Minister in 2006,

OM aims to represent 80% of all Malaysianutsourcing providers by 2012. Highlights of the

benets our members are enjoying are:

Industry RepresentationOM represents the local outsourcing industryto the Govt and private sector both locally and

verseas. OM is backed by the support of its twonstitutional partners, i.e. MDeC and MDV, andonsulted by a large number of organisationsuch as MDeC, MATRADE, PSDC, Malaysian

Central Bank, etc.

Trade Promotions Marketing the capabilities of Malaysianndustry to local and global buyers throughvarious trade events, while generating businesseads for members.

Providing business-networking opportunitiesfor members through networking sessions,nbound and outbound trade missions andndustry meets.

Industry Inormation

Joinoutsourcing

Malaysia

Contact:OM Secretariat

1106 Block B, Phileo Damansara 2

No 15 Jalan 16/11,

46350 Petaling Jaya

Selangor, Malaysia.

Tel:+603 7955 2922 F: +603 7955 2933

e-mail: [email protected]

For more information, please visit our website at: www.outsourcingmalaysia.org.my

Access to OMs Thought Leadership contentvia Members Login on its website.

Business Exposure Providing members with tremendous businessexposure and visibility through the complimentaryisting via OM website and overseas campaigns;

OM as the direct contact point for global

buyers. Afliations with global outsourcing focuspublication such as the Black Book of OutsourcingGlobal Vendor Directory, Forbes etc.

Priority, Subsidies & DiscountsOM Members are given priority in OM-organisedevents in terms of reservations, subsidies anddiscounts. Members are provided subsidieson Overseas Campaigns and other CapacityDevelopment Programmes. Discounts andcomplimentary priorities are allocated forparticipations of seminars, conferences, cocktails,ndustry talks, surveys, and media promotions.

Capacity Development

ProgrammesOM is responsible in introducing the InternationalAssociation of Outsourcing Professionals (IAOP)Certied Outsourcing Professionals (COP) andMaster Class programmes; and working alongsidewith MDeC on their K-Workers Development Institute(KDI) programmes designed to develop the humanesources of the industry.

Global Membership andAfliationGlobal Membership

Sourcing Interest Group (SIG)

IAOP through partnership with MDeC.

Global AfliationsThrough PIKOMs partnership and membership:

ASOCIO NASSCOM WITSA

ADFEATURE


30/48

1 2 3 4 5

Culture

Geographic distance

Language barriers

Recruiting and retention(at service provider)

Infrastructure

Time differences

Political uncertainty

Tax issues

n=184 Average rating1 = No challenges 5 = Significant challenges

Question: To what extent to do these issues pose challengesin your offshoring relationship?

28| Outsourcing | November-December 2009

Outsourcing | study

B dann Erel anJoeph Bbman

Complex utsurcing ratinshisar aways diicut t anag,but th uniqu charactristics shr das cicat thchang. S ary cncrnsabut shring, such as iticauncrtainty and ta issus, aart hav bc r anagabwith rinc.

othrs rain, hwvr, withn rising abv th rst, accrd-ing t hundrds articiants inth Vantag partnrs oshringRatinshi managnt Study:cutur (see Figure 1, right).

And th way custrs and r-vidrs anag cutur has a dirctiact n th vau thy achivin thir da.

wha w ma by l?Canis nary aways ncuntrdirnt rganisatina cuturswhn ntring int stratgic ra-tinshis with trna artnrs.Atr a, canis hav dirntstratgis, structurs, risk sitins,caabiitis, and nrs, and whnth da is r than a si buy-s transactin, ths dirncsiact hw thy wrk tgthr.

oshr ratinshis, thugh,rsnt uniqu changs bcaus rcivd cutura dirncsattributd ainy t th cuntryr rgin whr ach cany iscatd. And this ans that th vryarach artnrs tak t discussingdirnt structurs, aking stratgicdcisins, r rcnciing dirnt risksitins can b quit dirnt. Inthis study, w ain th iact rcivd cutura dirncs acrss

Offhoringrelaionhipmanagemen

the wa comer an erviceprovier manage clre ha airec impac on he vale heachieve in heir eal.



study | Outsourcing

13 ky dinsins: Individuals vs. groups (emphasisn individuas vs. grus) Status and hierarchy (egalitarianvs. hirarchica)

Risk (risk-averse vs. risk-taking) Directness of communication(indirect vs. direct) Relationships vs. tasks (emphasisn ratinshis vs. tasks) Time frame (short-term vs. long-tr rintatin) Multi-tasking (doing one thing ata ti vs. uti things) Decision-making (consensual vs.authritativ) Formality (informal vs. formal) Agreements (reliance on implicitagrnts vs. hasis n cn-tractua das) Ambiguity (tolerance for ambiguityvs. nd r crtainty) Dealing with conict (avoid conictvs. ngag dircty) Making commitments (agree evenwhn nt sur vs. ructanc t agrunss crtain can divr)

wha lal ffsxs?For most of these dimensions, atast tw-thirds custrs ss cutura dirncs btwnthir rganisatin and thir kyshr rvidr. Gnray, thysay thy ar uch r iky than

thir artnr t cnrnt cnictrathr than avid it, cunicatdircty rathr than indircty, anduti-task rathr than cus n nthing at a ti. Intrstingy, rvry dinsin, rvidrs ar ssiky t rciv signifcant dir-ncs with thir shr custr(see Figure 2, bottom right).

This may be because providerss thsvs dirnty r hwcustomers see them. For instance: Making commitments: 51% rvidrs s thsvs as ruc-tant t ak citnts unssabsuty sur thy can divr; ny

26% custrs say that abutthir rvidr. Time frame: 59% rvidrss thsvs as strngy rintdtward th ng tr, whi ny33% custrs say that abutthir rvidr.

Anthr anatin is that cus-trs s thsvs dirntyfrom how providers see them. Forinstanc: Multi-tasking: 71% custrssay thy hasiz uti-tasking,whi ny 45% rvidrs dscribthir custrs that way. Dealing with conict: 47% cus-trs say thy ssss a tndncyto confront and engage conict; only32% rvidrs say that abut thircustr.

0% 25% 50% 75% 100%100% 75% 50% 25% 0%

Directness of communication

Status and hierarchy

Making commitments

Ambiguity

Multi-tasking

Decision-making

Individuals vs. groups

Formality

Relationships vs. tasks

Risk

Dealing with conict

Time frame

Agreements

n=210n=154 No difference 1 point difference 2+ point difference

Average difference along 5-point scale in providers perceptionof their organization vs. their offshore customer for eachcultural dimension

Average difference along 5-point scale in customers perceptionof their organization vs. their offshore provider for eachcultural dimension

Percentage of respondents Percentage of respondents

Nearl everhing o oin an oorcing eal igeare owar achieving

maximm vale from heconrac. tha wh oaen o he relaionhip,an ha wh o holpa aenion o clre.



Outsourcing | study

why lalffs ma?Cutura dirncs cntribut tth difcuty ngaging in criticautsurcing activitis such as an-aging sc, gnrating innvatin,

and anaging rranc. Scanagnt, r instanc, is annging chang in cutsurcing ratinshis bcausth ncssary cnditins r suc-cssuy ngaging in that activity(e.g., efcient communication, ef-ctiv citnt anagnt,cabrativ issu rsutin) arrqunty absnt.

And in shr das, cuturadirncs arund cunica-tin, citnt anagnt,and issu rsutin shak thsundatins ctiv sc an-agnt.

the contract. Thats why you attendto the relationship, and thats whyyu shud ay attntin t cutur.The study shows clearly that culturaldirncs can rvnt bth artisr achiving th u vau thir

da: 64% rsndnts say thatth iact cutura dirncs isgratr than 10% annua cntractvau, and 33% say th iact isr than 20% (see Figure 4, right).

our study as shws that thiact cutura dirncs canb iniisd with ctiv gvr-nanc. Intatin variuschaniss, incuding jint skistraining and hath chcks, canh th artis vrc cuturachangs, ading t incrasdsatisactin with th ratinshi. Among those respondents withjint skis training and hath

0%

20%

40%

60%

80%

Communicatingeffectively

Identifying,raising, and

resolving issues

Managingscope

Managingperformance

Creatingbuy-in with

stakeholders

Managingcommitments

Generatinginnovation

Makingjoint decisions

Establishingan effective

governancestructuren=371

% respondents indicating that cultural differences have an impact on the following activities (rating a 3, 4, or 5 on 5-point scale)

Percentage

ofrespondents

n=374

% of annual contract value impacted by culture-related challenges

0%

1-10%

11-20%

21-30% 41-50%

More than 50% 31-40%

9%

18%

31%

34%

3%3%1%

Measures of added value

High savings

High staff morale

Quick response time to requests

Innovation and thought leadership

Delivery of value-added projects on

time and on budget

Customer satisfaction

Resources freed internally to doother work

Sources of lost value

Lost savings

Low staff morale

Missed deadlines

Missed innovation

Poor quality

Scope overruns

Complaints from end users

Time wasted on conict, revisiting

decisions

n=62

Satised Neither satised nor dissatised Dissatised

Of respondents with joint skillstraining and health checks in placein their deal, level of satisfactionwith how their organization has

managed the relationship

Of respondents with neither jointskills training nor health checks inplace in their deal, level ofsatisfaction with how their

organization has managed therelationship

n=170

65%

18%

17%

89%

3%

8%

It shud b n surris, thn,that 69% survy rsndnts saythat cutura dirncs hav aniact n sc anagnt (seeFigure 3, above). And ths 69%,ha idntiy signiicant cuturachangs arund dirctnss c-unicatin, ha cit signiicantcutura changs arund akingcitnts, and 45% nt signif-cant changs arund daing withconict (respondents could identifyr than n chang).

The consequences of ineffectivecutin sc anagntand thr critica utsurcing activi-ties are anything but trivial. Theyngativy iact custrs andrvidrs in th wing ways: Lost savings Low staff morale Missed deadlines Missed innovation Poor quality Scope overruns Service complaints from end us-rs Time wasted on conict, revisitingdcisins

h bm lNary vrything yu d in anutsurcing da is gard twardsachiving aiu vau r

chcks in ac, 89% ar satisfdwith hw thir rganisatin hasanagd thir rincia shr-ing ratinshi and ny 3% ardissatisfd. Among those with neither jointskis training nr hath chcks,ny 65% ar satisfd with hw thirrganisatin has anagd th daand 18% ar dissatisfd (see Figure5, below).

Companienearl alwaencounter dierent

organiaionalclre whenenering inoraegicrelaionhip wihexernal parner.


33/48



Outsourcing | Special Feature

Malaysias services mktmount to n nougng Us$3

bon gnt th gob mkt o tggng Us$770 bon, nt tud b h mi c ommond b OutoungM (OM) nd MDec.

Th k gowth o Mn ntt mn BunPo Outoung (BPO), stmi tgton (si) nd iT c nutng.Th Gonmnt, Fnn s i dut (Fsi) nd Mnutungt mn th gt oppotunt t o th ount,t d.

Th tt pot nttd s tg Pnnng & Tt rod MpFo Mn Ognton toBom ldng Gob Outoung Pod du n dtth tngth nd om k gpnd hotomng n M

pbt unt, nd mnnn whh th oud b ddd.

iDc d k undmnt o thbun k , pbt/kt nd bt mn bqumnt o o outoungp to ook o uth gowth.

OM c mn Dd Wongd: M tn mongth mot ttt oton ooutoung tttd b mnhgh nkng t h obtnd nnumou u, nudng oou, th a Kn 3d nkngnt.

How, w t nd to wokhd to h gt u oth ount, p thmgng on, t thngup.

Wong ddd tht th ountnd to ontnu to put n moot towd mkng th ndut

iDc ksno Mysnosong ndsy

thoough u. d: i m opnon, th o-

ndut mut b tngthndthough btt mkt po-gmm nd o b tng bggompn wthn th ndut uh gnt Wpo nd ino. Bd,th qut o tnt poo mut bmpod though hot-tm pnuh Tn nd P Pogmm.i th ong un, tn i l (i t-tut o Hgh lnng) uuumoud o b d to t o thBPO nd iTO to.

i nt tm, n o to th a P h mgdnd potond thm tt-t ohong oton nonmouwth gob oung ttg ndd nt. Font-unn to thu h tdton bn tuh Bngo, Dn nd M-n, who h quppd thm

ahogh Myss dy w-

known s nv oond o s vngos, nfsnd gnov sby,n mny ss hs bn down by h kof hgh v-sks qdfo hnitO nd BpOnggmns.


35/48

Special Feature | Outsourcing

wth dqut ntutu ndo k t tht h td n

u o ompt pbt ndomptn utd n mtnggob ohong dmnd.

in iDc w, wht ptth uu ount om thup-nd-omng on wthnwht dubbd th d nh-ng t. i n, th dnhng t to tht ognd hng hghdg o nfun n th donmkng po tht oud mk-o-bk th d. Th totk nto ount unt k tnd pbt, outoung do-mt mkt dmnd, outoungxpot mkt dmnd, bou ot,ngug pon nd oth u to.

OM Hd o Mktng & Bnd-ng, Bobb v n, g on th

ount. H d: a ong hot od nhng t, th two k on. Ft n bt todd nt ndut knowdg,nd th ond th bt too fxb bun nd nn

mod but ound nt und not ound ot. inth two k M gqut bhnd oth mtu podnton nd ompn.

v n ddd: Th w tompo th pt woud b to ttop thnkng iTO o BPO. rthpod nd to thnk bun nd bun mptng nd, nd tut thundtndng on th ont to gn omot tht pod- knowdgb bout thbun.

Too otn pod gt tuk

wthn th zon o omot thnoog o po. Th nb to om u nt ookng o. in bn o uhomptn wth nt bun,pod ondd ngupp, nd not ptn.conqunt d dut tob td o won.

a o, th pot d tht kt nd pbt p mjoo n th d nhng pt.a though M d w-known n ttt otondu to t ng ot, ntutu

nd gn o tbt, nmn t h bn t downb th k o hgh u-kqud o thn iTO nd BPOnggmnt.

a hghghtd n th tud, thnh oppotunt tht xt oo p n th ohotng, mot mngmnt ndpojt mngmnt o gon sind caD dpomnt. K to oppotunt tht h mgdn th n-tm O nd G,Md nd c mmunton, ndFsi (im Bnkng).

v n d:

M

d o rh, mot Mnompn t oung on thount ot dntg. long

d: W nnot on th otdntg on nmo th hp opton gon nd

ob. Mong owd, th ndo b t wth th uopoton nd nggmnt modth th nt.v n ddd tht ong

h o ndut ontnu to oow-nd ot-hng ommodtd

, bun w ontnu to ot to hp nton. H d:

Th not th ut o th n-on. r th t onom t p.

low-nd h ot, nduoundng nton hphn M. Th w b ponth M n potntom nt w ontnuo o ow-nd . i c h pont to th t .

current gaps according to

IDC Report

Wh M md gt tttowd tttng gob dngMNc nd ndo to Mn th 2000, h h owtkn h oot o th g nd htgntd omwht. l k o tntpoo mn hug nhbto omn gob ndo. Futhmo,th mgn o ow-ot d

nt uoundng M (in-don, Thnd, Phppn ndvtnm) h bom hug h-ng o th nton to ompt.

Wh th gonmnt hpd mwok n p to d-d th u, th puh towdmpmntton nd dopton hbn mnm nd th ntmntmn tht th Gonmnth not dqut utd thrM60 bon tmuu pk ntmnt nto icTndut

Strategic Planning & TacticalRoad Maps For MalaysianOrganisations to Become LeadingGlobal Outsourcing Providers Outsourcing Malaysia & IDCPublication, 2009

PRICE: USD$800 Special Price of RM800 for OMMembers

TO BOOK YOUR COPY CONTACT:Outsourcing Malaysia

orporate address:1106, Block B, Phileo Damansara II,15, Jln 16/11, 46350 Petaling Jaya,

elangor Darul Ehsan, Malaysia.T: +60 3 7955 2922F: +60 3 7955 2933

[email protected]

In IDCsview, what

separatese

successfulountries

rom theup-and-oming nes eswithinwhat is

ubbedhe deallinching

rtera.


36/48

Outsourcing | survey

NotwithstaN iNg e uecnmc enrnmen, e RPomrke cnnue r ely re n erm el nn n e l e yer. h eer,e nure el n e rnlume cne n 2009, ccrn Eere grup, lblcnuln n reerc rm. wlee rn leere n RPo currenly ler n erll Roncren c preure n ecurren ecnmc enrnmen le Nr amercn n UK buyer r recen e bck-ce RPoerce rm re lcn uc i .

te uy, Recrumen Prceouurcn (RPo Mn Beyne Pneer s e reel lei -equrere uppler uc i y, wpr, n Clber Pn

e lrey enere pce ne p yer, w ern uppleruc Mmenum n Peples u re l leern i relern RPo erce.

t e uy l prjec mrnl

ncree n el nn yercmpre 2008, bu ecreern lume reuln n mreelece, mller-ze el.

Mre n l e el renke by Nr amercn rm;eer, pn n e re bybuyer n e Une Knm nCnnenl Eurpe, prculrlyg rmny n Frnce.

RPo nen r mun nere mn buyer ene cu n pecln RPo uppler brn e ble, gur gup, Prncpl nCunry , Eere g up.

w le e rn lume ren n e curren ecnmcenrnmen, e lue prp-n RPo ll renn buyer re lkn r c-eece n lexble pn

n e curren urml n e me me cree n ecenn eece len cqun prce cn be cle up qucklyen bune enrnmen mpre.

e ncree e cpe pruc lecycle mnemen

lun prer n e mel ece nury. Frm ern cp enn ercee l benee rm e

ncren ncence crncee n e rn ue elecrnc n embee

yem n crculr neurly ece.

t e repr nlye euurcn pprune nrculr, plmc,ncly, enl, n neuly ece, ln

uy ru l uer eelpn, en n

muln l ue recl ece. te repr

erze e erce uurcn n mecl ece

rke ll:

pend on rcurmtutsurcig (po) is xct

t icras by 25% xt yar,th evrst Rsarch Istituthas fu. Th rgaisatifrcasts that utak f powill b l by th maturUS markt, whil eurabusisss will als ctiu

t icras s utsurc urchasig.lbal markt grwth will

b hl by a icrasi th umbr f sulirsffrig po srvics.

Rwig a xtig thc f xistig ctracts isls xct t ctributignicantly to overall spend.

evrst cult saywhat th ttal valu fth markt wul b.

st-cuttig, icrasigperational efciency and

rcurmt cmliac

will b th rimary rivrsfr rgaisatis sigig poals.

e rlir this yar KatriaMzigia, vic-rsitf evrst, tl UKs Suly

Maagmt magazi thatthr wul b a ris i po ithe nancial services sectors cmais rstructur mrg frm thcmic crisis.

evrst als rict aicras i ffshrig xtyear, after growth fell at in009. Althugh ay ris is

likly t b lwr tha histriclvls, evrst sai Iia ath philiis wul b thular lw-cst lcatis.

et:rPO

makt on thpwing

al dic 2014

Pocmntotocingon t

RPO iswitnessin aa r amountof interestamon

uyersven the

ocus andspecialisation

at

suppliersr n to thea e,

Gaurav Gupta



survey | Outsourcing

iN a CoMPEtitivE n brerle rl,rnn nee eery pble men rc n ren er len. Een n urbulen ecnmc clme, emplyee,epeclly e pe e recncl n beurl cmpeence,cnnue be crce reurce.

t re e rn cncern bulen rcn n reenn, Kelly ser-ce, rkrce mnemen ercen umn reurce lun prer,recenly lunce e pper le,Buln srn Emplyer Brn llme r unble rnn.

ornn nee unern eremplyee n rc peple rkr em. seerl mprn ren eemere n e rkrce. i cmpn

cnn ncnly.te rkrce y mre ner-

nnlly mble, genern Y (brnbeeen 1978 n 1995) mke up nncrenly lrer prn e rkrce,n ere reer emp n lyklle n knlee rker. t brn l e nee r eece emplyerbrnn rc n ren p l-en, explne Mel Nrmn, vP nCunry generl Mner Kelly serce(Mly) sn B.

te Kelly serce epper expln emplyer brnn rl-bepercepn mnemen prrmme nene re n rnn men e mrkeplce ell-mnebune, ereby rcn ey f

p quly pplcn er per me.

i urer ulne y cmmun-ce e Emplyer Brn uc rprrmme, erl cnen n reepublcn, preenn cnerencen rl prrmme.

Emplyer brnn n nerepprc nln eerl cr-uncnre expere nclun umnreurce, mrken, nnce, cumererce, n enr mnemen.

t be m eece, emplyer brnnmu be beleble n nerce, eNrmn.

i bu mkn yur rnn enn cmpny n ben e cleemplyer brn, Nrmn .

aBERdEEN gRoUP, hre-hnk Cmpny, n-nunce e relee le upply cn execunuy, Elun Lc ouurcn: Lk BereYu Lep!

t repr exmne cmpne e enblemre ume n cllbre rnprnn reue prcee ru rec ecn ue lc erce prer.

te n e lbl ecnmy er e p yer rce Lc Execue re-elue erupply cn ree n rer cree mre ecenn c-eece pern, Bb heney,enr reerc nly, abereen grup. te rle lc erce prer (LsP) cnnue ele cmpne lk ule er erce

pr mre nere upply cn.in uy, p perrmer ere nue

rm er peer be n ree perrmnce me-ure: n-me n cmplee pmen, n-meelery, n yer-er-yer reucn nenrycrryn c. tee perrmnce crer ere cenbecue ey pre n n e mpc erllupply cn ree (nclun uurcn), e ecn ec cumer lue, n rck c ce mkn beer upply cnecn.

acr ll repnen, erll upply cn c(40%) n ncren cmplexy (39%) re e m-requenly ce preure upply cnrnn. h rnn cmb eepreure u cmprmn perrmnce? terle ecnly uppr n-ue n uurcnree n upply cn mnemen crclcr n eermnn ucce, heney. imprn elue n unern e lue nernl lun n ny uurcn rey.

ACCoRdInG t IdC FiacialIsights latst rrt, whilisurrs tyically still havth tcy t lk iwars

rathr tha utsurc, thmarktlac is grwigicrasigly challgig ainsurance carriers in Asia/Pacicar bcmig mr cgizatof the benets of outsourcingtchlgy i rr tcmt i tays challgigmarktlac.

Isurrs hr hav hithrtb laggars i IT sig,but th cmic malaishas riv hm th t crat a mr yamicbusiss framwrk thrugh thassistac f tchlgy. Mr

isights ar rval i th stuyIsurac Vrs: Stlightigth Majr playrs i Asia/Pacic, which assesses thermit isurac tchlgyvendors in Asia/Pacic and theructs a srvics thyrvi.

Th rrt casts th stlight thr trris witechnology rms: CSC, IBMa SAp, a six isuractechnology (InsTech) rms:3i Infotech, Cognizant, EABSystems, eBao Technologies,Mastk a prt Systms.It rvis a cmrhsivcvrag f ach cmayicluig thir stratgicbjctivs; arach t ructvlmt, lymt

a surt; valu rsitia cmtitiv iffrtiati;markt ftrit a clitprole; and, overview of major

ructs. It als rvis IdCFiacial Isights assssmt fth strgths a limitatis fths rsctiv vrs.

Li-May Chw, CFA, SirRsarch Maagr fr IdCFinancial Insights Asia/Pacicsays, each cmay hasa uiqu valu rsiti,ffrig uacs i ructs,srvics a slutis.Fr istac, CSC has alarg istall bas withcmmabl -t-reach, while we applaud IBMshigh cmmitmt lvl t th

iustry a vast ISV csystmf busiss artrs. Amgstth IsTch rgaizatis, 3iIftch has a lauabl frt- sluti that arsssth full sctrum f isuracfunctions, and eBaoTech isviw as big a aggrssivcmay that has xcll atbuilig bra awarss.

IdC Fiacial Isights Asia/Pacic recommends thatisurrs xlrig ITo ascrtaithat th vrs ffrigscrrlat with thir rquirmts;mak cisis aru thxtt f custmisati rfrra th chic f multil vs.-systm slutis; a,xami th vrs ftrit frfrc clits.

emplo banding

ital toattact talnt

ealating logiticotocing: Lookbfo o lap!

In mo cpti to ITO



Outsourcing | basics

OutsOurcing pobably oe ohe mo omplex it deo mociO, cFO o Vedo Maaememake. i mo ae, ay oodeal wold volve a lo emommme o be aally vable.i eqe a adjme oee lal alme beweeboh pae, dealed aaly o heeve expeed by he omead eve level o be povdedby he oo vedo. O opo ha, he em ed ae oelehy ad dl o oep-ale, add o he omplexyo he poe. i h ale, we wll

exploe ome o he key aalem ad poo oe ed he o omplex oodeal oa.

Faal em ae val ayoo aaeme. the p-may e o mo oaao oooe o av. smlaly,he objeve o a oo ve-do o ee a poable beaeeme ha aable ohe opeao ad qaly oeve. some o he key aalem o be awae ae:-

pmet stemthe mo pevale h pao he wold mohly paymeeam. th pobably de ohe ommeal expoe we aeaomed o o daly ad

lve. Howeve, h may o behe mo eoomal aaemeo all volved pae. i eeme, hee have bee ooaaeme ed wh qaelyad b-aal payme eam.Aal payme eam ae alopaed alhoh hee woldo be he om. i ed malyby ah h oaao hawh o baa o lowe pe oaddoal eve e.

Fom a oo vedopepeve, h payme eamwll lead o he edo admave o ad ohe p-

po elaed o. the ma bee ha l he aal bdeby e a pove ah lowmoveme. naally, he omewold expe ome aal bee e h a lowe pe.

te pmet eesMo o wold be eaoablyamla wh h oep om laepayme o ed ad bll. i aeeally aepable oep baea o do wold be he laeee ed ad oe peod. iommo o ome o eqe oa dee ae omally peed oay oal pblhed ae by heloal bak aoao o ealbak, h de om oe ooe.

Fhemoe, beom moe

Fnnl ofoutourng trnton

eve. thee ae ome hademad ha oo vedoabob h applable axe. th pobably o a a aaeme admay lead o doeme amohe pae volved ove a loeem. sh lo em aaemeae beeal oly a w-w -ao adoped o all he paevolved.

dsputed eesWhle h o a ao ha aypae wold lke o expeee, doe happe epeally whe heeae hae o he ee e o

mmah o eve expeao.Oe o he mo eeve way oeolve h ao whle ma-a a pove elaohp ada expeed eve povo woldbe o eablh a jo oveaeom wh dee level o eala-o h a: Level 1 Team/Deal Manage-me Level 2 Country Management Level 3 Regional Management

th allow he e o be ad-deed by he h deo makead eable he poje eam o bohpae o oe he exwok elaohp. some moeomplex aaeme wold peyhe pe maxmm amo owhhold dpe ee (h a

ommo o ome oaaoo eqe o oe o wo week ooe peod om he oovedo o ay h lae payme,v hem a eod hae oee pomp payme a molae payme ae de o ealpoedal delay ahe ha e-oal ao.

txesFo mo oo eve, o-

wae o hadwae aaeme wll ome om o loal axe de-ped o law o he ho oy.thee ae ome oe ha allowo eded ax ae deped oae o eve edeed, h wold be we o ol he appo-pae aal ahoe o h

The motmportnt pontto keep note the pertnentneed to rete wn-wn tutonfor any nancialprmeter.


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y cK Mh

November-December 2009 | Outsourcing | 37

basics urcing

a peeae o he eve ee oao o he mohly eve ee).thee a alo be aaed o bedepoed o a eow ao,b may ome admaveee ad wold be moe appopaeo omplex ad lae oodeal.

exhge tessome o he mple oo dealwold be aaed ad povdedeely wh a la oywho ay exhae ae oe.Howeve, mo it ooed ooaao o ejoy wold-laeve level o omally avalableloally o may be oo expeve.i h ypal eao, hee wllbe eve povded om oveeaeoe ha may be bjeed oexhae ae.

t ee ae oaao haeje h povo ad expehe oo vedo o abobh k a pa o he lobaleve model. t ee oe lead o a

aave p o he omea mo vedo wold mply aoh exhae ae k o heo.

the mo o eeve olowold be o aee o a exhaeae baed o he ae pblhed byhe bak aoao o ealbak o he appopae oy.t wold be a a ad balaedappoah o ee lo laoo aaeme.

st vg djustmetth a eve em ad mayae oo d ay oo-

eoao o deoodoely. t e hee ae ooo eqe eve o bepeomed by it poeoal adhe alay (alay j oe exampleo ohe vaable o eleme b-je o adjme) o xed delaely o ea o deeafao adjme.

Fom a ome pepeve,he pe hold be xed whoay h o o lv faoe h he be k o heoo vedo. i my opo,he mo ommeally beealaaeme wold be o hadjme o be baed o a pblhed ae by he loal ahoeo epable hma eoe om-pae. the k o eeee o apblhed ae pee o a pe

ae o eve baed o he ype ooo aaeme. t wllee ha he pae volved aeo expoed o a hhe ae de oohe adjme ha elevao he oo aaeme.

the mo mpoa po okee oe he e

vable o he oo vedoad povde hh eve level ohe ome.

CK Mah specialises in the area ofinfrastructure outsourcing, applica-

tl Fnnlterm re

mportnt nny outourngrrngemen .



Outsourcing | management

Holidy choics

for workplc

C y ployraord to let employeestake o for all of theseholidays, or must theyhv so wy ofkeeping track of whichholidays are importantto any individualploy?



management | Outsourcing

appy Holidays. Th the enr h n h thrughut the wr. p e hve vret erent ceebrtn me r nge, ther r mute wthmute bgtn n ctvte.Fr emer n mnger there

ByDr rLyD o

we trte ttemtng t hnurvert, we, mt Chrtn n-tn, ceebrte Chrtm wth ght,tree, n regu mb. Thrughthe er the regu mb wereremve n reect r the ntChrtn, but ght n tree n

were u nw ceebrtng d w.s n Chrtm ght w jn them.int t mre un, mre tve, mreeectu t w ee t hnur

ther h n h- n therwn w, hrng wht the wh

wth the ret u n ther mre ubc? i thnk . i ke chce.

i h en r ceebrnt,but rbb qute fcut r then the wrkce requre t juggettn, ee, n tk n rert hve the necer cverge r

the ee w be wrm wrk. Hw u mnge?w u knw wh t gve wht ?

?New y r, Hween, d the

e, w, Thnkgvng, Chnu-

h, Chrtm, New y r thee cme n the n wntern re ceebrte n ne rm rnther thrughut the wr. Echuntr n ech regn h t wn

vern ntng, reng, nrng. Fr the wh rctce theregn, thee h re h-n there re rtu t be errme,equrng rm wrk.

w emer hne theee uch vere wrkrce?

Cn n emer r t etmee tke r thee, r mut the hve me

w keeng trck whch h-

re mrtnt t n nvumee? i keeng trck, urmee nee t rve t u whtegn the re n hw bervnt

the re? i knw n the Jewh regnthe mre rthx hnur mn

re h thn the cererme r e bervnt trtn. smr erence extn ther regn we.

mtter hw creu u trt cntr t, there w be tme when

r mt ur emeewnt the me . Hw u

ne th nee? Here n the Usa rxme, there re h tht the

vt mjrt wrker ceebrte.Thnkgvng, Chrtm n Newy r re h mt tke nbecue tht tc mt frmre ce cmete r the .

Isnt it more fun,more positive,more respectfulto allow peopleto honour theirholidys d holy-

ays in their own



Outsourcing | management

Tht cure ut Mum, Jew nther nn-Chrtn n n wkwrn unr tn nce the getthee whether the neethem r nt n nt hve theme rght r ther h.

i knw tht n New yrk Ct mner g there w mntew requrng bunee t ce nsun n bervnt the Chrtn ret. The Jewh cmmunt,hnurng stur the ret, were then rce t be ce bth. Eventu, ter much bbngthe w were chnge tht trecu be ce ether , r enbth . Th gve ee chce.

i ke chce. i thnk tht we t ree hw much we cntr thectvte ther r ren ethn rtn r necer. let g

bck n k t h n hwthe cu be hne.

i ve m cent t w certn munt ern tht emee cn ue wheneverthe wh r whtever ure thewh. The n tutn i wumke t requet vnce ntce rnnng ure eec theemer nee t f the g urngthe tme tht emee mng.

i thnk tht erng emee et munt tht the cn uer ckne, h, n vctn much eer n mre eectvethn cttng hw mn thecn ue r ech thee nee. Bettng them che u re wngthem t ct ut, mkng therwn ecn t hw the wh ten ther ree tme.

B chng r them, u reuttng them n tn hvngu mke the ecn r them nten nvtng nvu t e n the re when n ct the nee

the r ther ren.let me te u tr but

techng ee t mke ther wnecn. it ent hve nthngrect t wth bune, but ture the bet trtng ce i knwr the u rng chren, nt en te t tctc r mngngther.

Mn er g, m ter n hertw ung ughter cme t vt men Crn rm New yrk Ct. Thegr were rxmte x er (Gbree) n nne (ame.) Whethe were vtng we ece t tkethem t dnen n i ke mter hw much mne he whet gve ech the gr enngmne. int m ter ththe wnt nnng t gve themn mne, but when the wntemethng he ece whether tbu t r th

outsourcing issue #15

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